Tuesday, 11 Feb 2014

Written Answers Nos. 143-160

Pension Provisions

Questions (143)

Bernard Durkan

Question:

143. Deputy Bernard J. Durkan asked the Minister for Finance if he will clarify the definition of the €12,700 guaranteed income required in situations where life assurance policies are capitalised and where the maximum immediate capitalisation is sought by the contributor; if such guaranteed income is required to originate from a State pension or private income; and if he will make a statement on the matter. [6290/14]

Written answers

Minister for Finance

I assume that the guaranteed income requirement referred to in the question relates to one of the conditions to be satisfied in order for an individual to invest the proceeds of certain pension savings into an Approved Retirement Fund (ARF).

ARFs were introduced by Finance Act 1999 to provide control, flexibility and choice to certain individuals in relation to the drawing down of benefits from their pension plans. Prior to that Act, any person taking a pension from a Defined Contribution (DC) scheme or a Retirement Annuity Contract had no choice but to purchase an annuity with their remaining pension pot after drawing down the permissible tax-free retirement lump sum.

The choices which then became available included the existing option to purchase an annuity with those remaining funds, and new options to receive the balance of the pension funds in cash (subject to tax, as appropriate), to invest in an ARF or an Approved Minimum Retirement Fund (AMRF), subject to certain conditions. Access to these flexible options was extended to all main benefits from retirement benefit schemes (other than Defined Benefit pension arrangements) in Finance Act 2011. ARFs and AMRFs are therefore investment options into which the proceeds of these pension arrangements can be invested on retirement. It is not clear from the details provided in the question if the life product referred to represents a pension arrangement to which the flexible options would apply.

Under the regime the options to:

-invest in an ARF; or

-receive the balance of the pension fund in cash (subject to tax, as appropriate)

 are subject to conditions. The conditions include the requirements that the individual be over 75 years of age or, if younger, that the individual has a guaranteed level of pension income ("specified income") actually in payment for life at the time the option is exercised. The minimum level of specified income currently stands at €12,700 per annum. The purpose of the specified income requirement is to ensure, before an individual has unfettered access to their remaining retirement funds via an ARF or by way of the cash option (subject to tax), that they have the security of an adequate guaranteed pension income throughout the period of their retirement. 

 Specified or guaranteed income means income that an individual is actually in receipt of in his or her own right, at the time the ARF option is exercised, from a pension in payment for the life of the individual (not a pension to which he or she would have an entitlement in the future). Specified income includes the State contributory or non-contributory pension (excluding amounts paid in respect of a dependent spouse or other individual) or an equivalent pension in payment from another State. The income requirement can also be satisfied by private pension income or an annuity in payment for life.Where the minimum specified income test is not met, and an individual does not wish to purchase an annuity, then an AMRF must be chosen into which a "set aside" amount must be invested. The maximum "set aside" amount required to be invested in an AMRF is €63,500 of the pension fund or the remainder of the pension fund after taking the tax-free lump sum if less than €63,500. Any pension fund remaining after the investment of €63,500 in an AMRF may be invested in an ARF. The purpose of an AMRF is to ensure a capital or income "safety net" throughout the latter period of their retirement for individuals with pension income below the specified income limit.  The capital in an AMRF is not available to an individual until he or she reaches 75 years though any income generated by the fund can be drawn down subject to tax. The capital in an AMRF can be used by the owner at any time to purchase a pension annuity and the AMRF can be changed to an ARF with access to the capital sum (subject to taxation) before the age of 75 where the specified income test is met before that age.

Tax Credits

Questions (144)

Seán Ó Fearghaíl

Question:

144. Deputy Seán Ó Fearghaíl asked the Minister for Finance the reason changes in tax credit and tax cut-off rates have been made in respect of a person (details supplied) in County Kildare; and if he will make a statement on the matter. [6295/14]

Written answers

Minister for Finance

I have been advised by the Revenue Commissioners that the tax credit and the tax cut off point of the person concerned have changed as a result of the person s  Department of Social Protection State Pension Contributory as advised to Revenue having increased from an amount €21,066 in 2013 to €22,703 in 2014. A tax credit certificate issued to the person concerned on 16 December 2013 including this pension amount.  If these details are not accurate the person concerned should contact Revenue at LoCall 1890 44 44 25 to have his record updated.

Tax Code

Questions (145)

Jerry Buttimer

Question:

145. Deputy Jerry Buttimer asked the Minister for Finance if expenditure on maintenance and improvement of a property can be taken into account when determining the amount of capital gains tax due; and if he will make a statement on the matter. [6306/14]

Written answers

Minister for Finance

Capital gains tax legislation sets out the rules relating to the expenditure that is allowed in computing a chargeable gain and the amount of capital gains tax due. Expenditure that is allowed includes the cost of acquisition of an asset, enhancement expenditure incurred during the period of ownership of the asset and costs incurred in disposing of the asset.

Enhancement expenditure means expenditure which adds to the value of the asset and which is reflected in the state or nature of the asset at the time the asset is disposed of. This expenditure must be expenditure of a capital nature. It follows that expenditure incurred on improvements to a property can be taken into account for capital gains tax purposes but only where it is capital in nature and comes within the definition of enhancement expenditure as explained above.

Expenditure of a revenue nature such as maintenance and repairs is not allowable for capital gains tax purposes but relief may be available for income tax purposes where the property is let or is used for the purposes of a trade or profession.  

In the case of rental property, the cost of maintenance and repairs borne by the landlord under the terms of the letting agreement, but excluding any capital expenditure, is deductible from gross rents in computing rental income for income tax purposes.

In the case of a property used for the purposes of a trade or profession, the cost of maintenance and repairs wholly and exclusively laid out or expended by the taxpayer for the purposes of the trade or profession (but not the cost of improvements that is capital in nature) is deductible in computing the profits of the trade or profession chargeable to income tax.

Property Tax Assessments

Questions (146)

Jerry Buttimer

Question:

146. Deputy Jerry Buttimer asked the Minister for Finance if the liability for local property tax in respect of a person (details supplied) in County Cork will be reviewed taking into account that they do not own some of the properties which the Revenue Commissioners have stated for part of their LPT liability; and if he will make a statement on the matter. [6311/14]

Written answers

Minister for Finance

I am advised by Revenue that a key aspect of the work undertaken in regard to Local Property Tax (LPT) was the development of a comprehensive register of residential properties in the State. During the compilation of the Property Register some matching difficulties were encountered when consolidating the various data sources, and in certain instances the linkage of properties to relevant owners was done incorrectly. As part of its comprehensive LPT communications strategy, Revenue clearly stated that errors in the compilation of the Property Register were inevitable given the scale of the task, and requested that anybody who was linked incorrectly to a property should immediately contact the LPT Helpline to avoid unnecessary compliance interventions.

In regard to the specific case to which the Deputy refers, I am informed that the person in question failed to inform Revenue that he was not the liable owner of the  property which was incorrectly linked to him, despite receiving notifications on the issue in respect of both the 2013 (March 2013) and 2014 (October 2013) filing dates.

However the person did finally make contact with the LPT Helpline on 31 January 2014 and on foot of his conversation with the customer service agent the Property Register was updated to correctly reflect his property details.

Tax Code

Questions (147)

Jack Wall

Question:

147. Deputy Jack Wall asked the Minister for Finance if a person (details supplied) in County Kildare is being deducted the correct amount of tax; and if he will make a statement on the matter. [6370/14]

Written answers

Minister for Finance

I have been advised by the Revenue Commissioners that the income tax being deducted by the employer in this case would appear to be correct. A copy of the person's tax credit certificate will be issued to him shortly.  The details shown on the certificate are based on the most recent information Revenue has in relation to the person's tax credit entitlements. If these details are not accurate the person concerned should contact Revenue on LoCall 1890 44 44 25 to have his record updated.

Tax Credits

Questions (148, 167)

Kevin Humphreys

Question:

148. Deputy Kevin Humphreys asked the Minister for Finance if he will arrange for the incapacitated child tax credit to be granted to a person (details supplied) in Dublin 12 in view of the fact that the updated medical information shows a disability, and they qualify for domiciliary care allowance and other State supports; if the incapacitated child tax credit has been granted to parents of children with dyspraxia; if so, the number that currently receive same; and if he will make a statement on the matter. [6375/14]

Kevin Humphreys

Question:

167. Deputy Kevin Humphreys asked the Minister for Finance if the incapacitated child tax credit has been granted to parents of children with dyspraxia; if so, the number that currently receive same; and if he will make a statement on the matter. [6659/14]

Written answers

Minister for Finance

I propose to take Questions Nos. 148 and 167 together.

The legislation governing entitlement to the incapacitated child tax credit is contained in section 465 of the Taxes Consolidation Act 1997, as amended. The legislation provides that an individual is entitled to the tax credit for a year if he or she proves that at any time during that year he or she had a child who:

- is under 18 years of age and is permanently incapacitated by reason of mental or physical infirmity, or

- if over the age of 18 years at the beginning of the year,  is permanently incapacitated from maintaining himself/herself and had become so permanently incapacitated either before reaching 21 years of age or after that age but while receiving full-time instruction at any university, college, school or other educational establishment.    

A child under 18 is regarded as permanently incapacitated by reason of mental or physical infirmity only if that infirmity is such that if the child were over 18 there would be a reasonable expectation that he/she would be incapacitated from maintaining himself/herself.

In order to establish entitlement to the credit in respect of any such child, medical evidence is required to confirm both the extent of the incapacity and whether the incapacity permanently prevents the child from being able in the long term to maintain himself or herself independently when over the age of 18 years. In the case mentioned by the Deputy, to date the Revenue Commissioners have not been supplied with the required medical certificate confirming that the child in question will not be in a position to maintain himself independently when over the age of 18 years. 

I am further informed by the Revenue Commissioners that 17,992 individuals are currently in receipt of the incapacitated child tax credit. However, the Commissioners do not have a breakdown of figures by reference to the different categories of disabilities of the children in respect of whom the credit is given.  

Pensions Levy

Questions (149)

Clare Daly

Question:

149. Deputy Clare Daly asked the Minister for Finance if he will abolish the pension levy on pension scheme assets. [6419/14]

Written answers

Minister for Finance

I announced in my Budget 2014 speech that the 0.6% Pension Fund Levy introduced to fund the Jobs Initiative in 2011 will be abolished from the 31st of December 2014. I have, however, introduced an additional levy on pension funds at 0.15% for 2014 and 2015. I am doing this to, among other things, continue to help fund the Jobs Initiative. I have no plans to change this position.

Revenue Commissioners Investigations

Questions (150)

Michael McGrath

Question:

150. Deputy Michael McGrath asked the Minister for Finance the total amount paid by the Revenue Commissioners in each year from 2010 to 2014 as reward for information received from whisteblowers or other information received; the number of cases involved; and if he will make a statement on the matter. [6424/14]

Written answers

Minister for Finance

I am advised by the Revenue Commissioners that two payments of the kind referred to by the Deputy were made, one of €500 in 2011 and one of €500 in 2012. Such payments I understand are made only in certain defined and limited circumstances. The approval of such a payment by Revenue is conditional on the provision of new and/or significant information which results in a substantial recovery of taxes and/or duties, controlled drugs and/or prohibited goods.

Departmental Contracts Data

Questions (151)

Billy Kelleher

Question:

151. Deputy Billy Kelleher asked the Minister for Finance if he will name each company awarded a contract for the provision of professional services by his Department and agencies under his aegis since May 2011; the value and purpose of the contract; if a competitive tendering process was undertaken in line with public procurement best practice; and if he will make a statement on the matter. [6455/14]

Written answers

Minister for Finance

The information requested by the Deputy for my Department is outlined in the table. Information relating to the National Treasury Management Agency (NTMA) is not included. I will forward it to the Deputy as soon as possible.  

Department of Finance:

Professional Services	2011	2012	2013	2014	Tendered	Purpose
Arthur Cox	€1,373,060	€2,879,427	€1,728,407		Ongoing - contract novated from National Treasury Management Agency (NTMA)	Legal advice in relation to the Bank Guarantee Scheme. Recapitalisation issues,Nationalisation,the National asset Management Agency (NAMA), the Eligible Liabilities Guarentee Scheme (ELG), Nationalisation of Anglo Irish Bank, Recapitalisation and restructuring plans, General Banking matters/restructuring
Aram	€121,000	-	-	-	Not tendered - specialist advice	Advices in relation to Framework Development - Mortgage Arrears
Charles River	€60,500	-	-	-	3 suitably qualified firms were asked to quote	Advice on competitions and mergers
Mazars	€52,454	€60,885	-	-	Yes	Professional services in relation to the SME Lending Survey
Niamh Hyland	€24,657	-	-	-	No - engaged by A.Gs Office	Competition and State Aid advisors
David Barniville	€36,402	-	-	-	No - engaged by A.Gs Office	Competition and State Aid advisors
Mercer (Ireland) Ltd		€73,800	€72,570	-	Yes	Review of Remuneration Practices & Frameworks at the Covered Institutions
A & L Goodbody	€2,823	€2,869	€2,873	-	No	Company Secretarial work taken over from another Department
BDO	-	€64,575	-	-	Yes	Review of Film Tax Relief
Deloitte	-	€61,553	-	-	Limited Competition	External Review of General Government debt statistical error
Grant Thornton	-	€31,808	-	-	Selected following an evaluation process	Assessment of the Credit Review Office
Matheson	-	€289,604	€717,923	-	Ongoing - contract novated from National Treasury Management Agency (NTMA)	Legal advice regarding the acquisition and sale of Irish Life and related matters
Red C	-	€61,439	€118,572	-	Yes	Professional services in relation to the SME Lending Survey
Thomas J Foley	-	€71,217	-	-	No - appointed without tender due to the urgency of the work	Consultancy Services (Mortgage Arrears/Personal Insolvency Project)
National Asset Management Agency (NAMA)	-	-	€23,351	-	Procured by NAMA	Advice to Ministerial Advisory Group
Dr.Anil Shivdasani	-	-	€82,253	-	No	Expert witness - pro notes
Economic & Social Research Institute	-	-	€39,986	-	Yes	Modelling support - Medium Term Economic Conference (MTEC) and Medium Term Economic Strategy (MTES)  - spatial development principles (two projects)
PCMA Economic Consultancy	-	-	€49,043	-	Yes	Economic consulting - MTEC
Crowe Howarth	-	-	€36,851	-	Yes	Review of R & D tax credit
Indecon	-	-	€28,290	-	Yes	Living City Initiative - cost benefit analysis
Creative AD Ltd	-	-	€7,472	-	Written quote	Graphic Design
Strata 3	-	-	€46,726	€9225*	Yes	Website Development/Website development for MTES*
Context	-	-	-	€7,168	Yes	Irish translation of MTES
Carlow Matos Cahvez	-	-	-	€759	N/a - below threshold	IT Consultancy

Details regarding the agencies under the aegis of my Department are listed separately:

 

Credit Union Restructuring Board (ReBo):

The Credit Union Restructuring Board ("ReBo") was established on the 1st January 2013 under the terms set out in the Credit Union and Co-Operation with Overseas Regulators Act, 2012 (Credit Union Act). The following table sets out the contracts for professional services since 1st January 2013.

Company / Individual	Service	Value 2013
Burke & Associates	Consultancy services	€3,389
Derrylahan	Project Manager	€68,277
Dalriada - Agency fee	Recruitment	€14,336
Dalriada	Consultancy services	€79,643
Digilogue	Website	€9,188
Institute of Public Administration (IPA)	Corporate Governance	€5,535
Jefferson Payroll	Outsourced Payroll	€659
Life Changes Global (LCG)	Recruitment	€6,089
Mason, Hayes & Curran	Legal	€59,805
Maxwell Photography	Photography	€590
Public Appointments service (PAS)	Recruitment	€6,720
Premier Recruitment	Recruitment	€5,330
Rory Murphy	Administration & IT services	€4,800
Spector	IT consultancy	€850
Tierney and Associates	Internal Audit	€7,687
Waterloo Chartered Building Surveyors	Building survey	€2,399
Zenark Ltd	Media Monitoring	€769

NB. All figures above are inclusive of VAT.

A competitive tendering process was undertaken in line with public procurement best practice prior to the awarding of contracts.

Revenue Commissioners:

Revenue avails of a wide range of professional services these are broken down into three tables below for convenience. Table 1 covers consultancy, professional and legal services. Table 2 covers the engagement of external resources to work with Revenue in-house ICT teams and Table 3 covers the provision of post sales/software support. All contracts were awarded following appropriate tendering processes in line with public procurement best practice. Revenue publishes details of all purchases over €20,000, quarterly, on its website.

Material covering consultancy contracts, professional and legal services

Year	Count	Company	Professional Service	Value
2011	1	Baker Ryan Tilly Glennon	Advice Employment law	€6,993
-	2	Darlington Consulting	VDU Ergonomic Assessment	€229
-	3	Doran Cray Architectural Services	Refurbishment	€12,857
-	4	Driver Focus	Advice on development of safe driving for the work place	€10,690
-	5	Murray McCarter	Valuation Assistance	€300
-	6	Riverside Medical Centre	Medical Report	€150
-	7	Vector Workplace and Facilities Mgt Ltd.	Tender evaluation and development	€944
-	8	Achilles Procurement Services	Legal and Procurement Services	€29,547
-	9	Costello Commercial	Valuation Services	€47,188
-	10	Linsey	Valuation Services	€1,210
-	11	Organisation Design Consultants Ltd	Professional Advice	€4,983
-	12	Ronan Smith Ind Consulting	Professional Advice	€19,166
-	13	Gartner Group	Procurement Services	€30,967
-	14	Rochford Brady Legal Services Ltd	Law Searches	€41,151
-	15	Doyle Court Reporters Ltd	Stenography Services	€91,130
-	16	Gwen Malone Stenography Services	Stenography Services	€16,031
-	17	Arthur Cox	Specialist Advice	€14,616
2012	1	Bowe Systec (Ire) Ltd	Report commissioned on facilities for Print & mail centre	€7,260
-	2	Catalyst Consultants	Advice on Employment Law	€4,800
-	3	Achilles Procurement	Technical Advice on Procurement	€5,243
-	4	OHSS Safety Consultants	Health & Safety Air quality control	€1,919
-	5	Authentic	Technical Advice on Procurement	€775
-	6	Baker Tilly Ryan Glennon	Advice on Employment Law	€14,706
-	7	Costello Commercial	Valuation Services	€54,839
-	8	Fitzsimons Doyle & Assoc.	Refurbishment	€984
-	9	Leyden Consulting Engineering	VDU Ergonomic Assessment	€697
	10	Linsey	Valuation Services	€984
-	11	Hanna Moore Curley	Patent Valuation Services	€2,961
-	12	Newbridge Research Centre	Professional Advice	€2,200
-	13	Oakwood Psychotherapy	HR Support	€540
-	14	Janacon	Mobile app review	€1,968
-	15	Service Solutions	VC  facilities support	€3,444
-	16	Gartner Group	Procurement Services	€19,680
-	17	Rochford Brady Legal Services Ltd	Law Searches	€59,842
-	18	Doyle Court Reporters Ltd	Stenography Services	€68,549
-	19	Gwen Malone Stenography Services	Stenography Services	€90,098
-	20	Arthur Cox	Specialist Advice	€39,367
-	21	Philip Lee	Specialist Advice	€1,380
2013	1	Arthur Cox Solicitors	HR Advice	€13,478.99
-	2	Authentic Solutions Ltd	Energy Management Project Support	€7,011.00
-	3	Kashan Carpets and Flooring	Valuation Assistance	€56.75
-	4	Lynne Forrest BA(Hons) MA	Critical Incident Support	€240
-	5	OHSS Safety Consultants	Environment Testing	€4,324.27
-	6	Summerhill Veterinary Ctr	Veterinary Services	€41.50
-	7	Achilles Procurement Services	Technical Advice on Procurement	€1,104
-	8	Costello Commercial	Valuation Services	€13,714
-	9	Creative A.D	Design Services	€3,383
-	10	Dalton Technologies Ltd	R&D Advice	€635
-	11	Gunne	Valuation Services	€3,075
-	12	Hooke & Macdonald Ltd	Valuation Services	€2,269
-	13	Leyden Consulting Eng	VDU Ergonomic Assessment	€2,177
-	14	Linsey	Valuation Services	€12,599
-	15	Mealys Fine Art Ltd	Valuation Services	€1,230
-	16	Power Kelly & Co	Professional Advice	€2,190
-	17	Baker Tilly Ryan Glennon	Advice on Employment Law	€1,593
-	18	Dtz Sherry Fitzgerald Ltd	Valuation Services	€3,690
-	19	Whyte & Sons Auctioneers	Valuation Services	€1,845
-	20	Gartner Group	Procurement Services	€47,601
-	21	Rochford Brady Legal Services Ltd	Law Searches	€62,478
-	22	Doyle Court Reporters Ltd	Stenography Services	€76,188
-	23	Gwen Malone Stenography Services	Stenography Services	€58,122
-	24	Arthur Cox	Specialist Advice	€14,096

External Resources

Year	Count	Company	Professional Service	Value
2013	1	Accenture	Resources to work with Revenue in-house on a range of ICT roles.	Share of €18-25m per year.
-	2	Deloitte	Resources to work with Revenue in-house on a range of ICT roles.	Share of €18-25m per year.
-	3	Ergo Services	Resources to work with Revenue in-house on a range of ICT roles.	Share of €18-25m per year.
-	4	Fujitsu (Ireland) Limited	Resources to work with Revenue in-house on a range of ICT roles.	Share of €18-25m per year.
-	5	System Dynamics Ltd	Resources to work with Revenue in-house on a range of ICT roles.	Share of €18-25m per year.
-	6	Version 1 Software Ltd	Resources to work with Revenue in-house on a range of ICT roles.	Share of €18-25m per year.

Note: In 2013 the Revenue Commissioners made an approach to the market by way of open competitive tender, for the provision of external support to work with Revenue in-house staff on a range of mainly ICT roles. In line with Revenue's multi-sourcing strategy, it was signalled in the tender that Revenue intended to engage more than one vendor. Following completion of the tendering process, contracts were signed with the above six companies. The notification published in the Official Journal of the EU indicated that the expected value of the combined contracts would be €18-25m per year. The contracts were awarded for a period of 2 years.

Post Sales/Software Support

Year	Count	Company	Professional Service	Value
2011	1	Advanced Business Solutions	Software support for commercial 3rd party product eFinancials	€16,982
-	2	Bull Information systems	Software support for commercial 3rd party products eBiscus and Eskort.	€32,354
-	3	Computer Associates	Software support for commercial 3rd party CA products.	€13,310
-	4	Innovative Systems	Software support for commercial 3rd party ISI products.	€21,772
-	5	Luminary Solutions	Software support for commercial 3rd party product MIF Dimensions.	€13,510
-	6	Microsoft	Software support for commercial 3rd party Microsoft products.	€66,908
2012	1	Actian	Software support for commercial 3rd party product MIF Dimensions.	€9,933
-	2	Advanced Business Solutions	Software support for commercial 3rd party product eFinancials	€3,386
-	3	Bull Information systems	Software support for commercial 3rd party products eBiscus and Eskort.	€104,690
-	4	Detica	Software support for commercial 3rd party NetReveal product.	€374,172
-	5	Microsoft	Software support for commercial 3rd party Microsoft products.	€53,136
-	6	WCC Services	Software support for commercial 3rd party product ELISE	€4,274
2013	1	Actian	Software support for commercial 3rd party product MIF Dimensions.	€3,136
-	2	Advanced Business Solutions	Software support for commercial 3rd party product eFinancials	€1,372
-	3	AutoAddress	Software support for commercial 3rd party product AutoAddress.	€218,761
-	4	Bull Information systems	Software support for commercial 3rd party products eBiscus and Eskort.	€423,035
-	5	Cloudera	Software support for commercial 3rd party Hadoop based product.	€18,134
-	6	Detica	Software support for commercial 3rd party NetReveal product.	€298,946
-	7	Innovative Systems	Software support for commercial 3rd party ISI products.	€216,718
-	8	SAS Institute	Software support for commercial 3rd party SAS products.	€17,417
-	9	WCC Services	Software support for commercial 3rd party product ELISE	€15,744
-	-	-	-	€1,213,263

 

Comptroller & Auditor General:

The following contracts were all subject to a competitive tendering process.

Company	Legal Service	Consultancy Services	Audit Services	Cold Review
Thomas Walsh	-	€15,125.00	-	-
Ronan Dardis	-	€33,135.77	-	-
Insight Statistical Consulting	-	€2,583.00	-	-
Productive Personnel Ltd	-	€5,445.00	-	-
Access Accountancy Ltd	-	€6,977.79	-	-
Philip Lee Solicitors	€52,091.66	-	-	-
KPMG	-	-	-	€10,762.50
Deloitte & Touche	-	-	€23,914.00	-
Mazars	-	-	€34,260.00	-
ASM	-	-	€8,265.60	-

 

National Asset Management Agency (NAMA):

Information on professional services engaged by the National Asset Management Agency from May 2011 is set out below.  The procurement requirements of the Agency are run pursuant to the relevant procurement legislation, and in accordance with internal best practice guidelines which seeks to ensure that value for money is achieved. The information provided is only in respect of contracts awarded by NAMA.  NAMA has put a framework panel of advisers in place pursuant to a tender competition. NAMA publishes extensive information in respect of all NAMA appointments pursuant to a tender competition on its website www.nama.ie. Costs associated with services are published in its annual reports.

Description of Services Document Management and Workflow System	Year 14th Feb 2011	Service Provider Bearing Point Ireland Limited	Value €231,246 inc VAT	Duration Proprietary	Tendered Yes advertised via www.etenders.gov.ie and the Official Journal of the European Union	Reason not tendered and why service provider selected
Portfolio Management System	7th March 2011	Ergo	€3,669,808 inc. VAT to date	Proprietary	Yes advertised via www.etenders.gov.ie and the Official Journal of the European Union
Multi-jurisdictional tax advice and tax compliance services	18th April 2011	KPMG PwC Deloitte	On-going	3 yrs. with option to extend at NAMA's discretion	Yes advertised via www.etenders.gov.ie
Loan Sale Advisory Services	3rd Jan 2012	Lot 1 (Europe) Brookland Partners Cantor Fitzgerald CB Richard Ellis Cushman & Wakefield The Debt Exchange Eastdil Secured Ernst & Young Goldman Sachs Jones Lang LaSalle KPMG Lazard Savills UBS Lot 2 (USA) CB Richard Ellis Credit Suisse The Debt Exchange Eastdil Secured Ernst & Young Holliday Fenoglio Fowler (HFF) Houlihan Lokey Jones Lang LaSalle KPMG Lazard	On-going	3 yrs. up to max of 5 yrs.	Yes advertised via www.etenders.gov.ie and the Official Journal of the European Union
Accounting Advisory Services	20th Jan 2012	Deloitte	On-going	Up to 4 yrs.	Yes advertised via www.etenders.gov.ie and the Official Journal of the European Union
Corporate Legal Services	3rd Jan 2012	A&L Goodbody Arthur Cox McCann FitzGerald William Fry	On-going	3 yrs. with option to extend at NAMA's discretion	Yes advertised via www.etenders.gov.ie
Credit Verification Services	13 March 2012	BTG Global Risk Partners Deloitte Ernst & Young Grant Thornton Horwath Bastow Charleton KPMG PwC Risk Management International Salamanca Risk Management	On-going	2 yrs. up to max of 4 yrs.	Yes advertised via www.etenders.gov.ie
Annual Report design and publication	April 2013	Fabrix	c. €30,000 per annum	Up to 3 years	Yes Invited a number of firms to quote
Insurance Brokerage and Advisory Services	25th April 2012	Aon	On-going	Up to 5 yrs.	Yes advertised via www.etenders.gov.ie and the Official Journal of the European Union
Business/project support services	29th Oct 2013	BearingPoint Ireland Limited Ernst & Young KPMG PwC SunGard Consulting Services (Ireland) Limited	On-going	4 yrs.	Yes advertised via www.etenders.gov.ie and the Official Journal of the European Union
Enforcement and Insolvency Practitioners	28th Feb 2013	Panel A Insolvency Practitioners (Corporate) Ireland Baker Tilly Ryan Glennon BDO Crowe Horwath Deloitte & Touche Ernst & Young Ferris & Associates Friel Stafford Gilroy Gannon Grant Thornton Corporate Finance Ltd Hughes Blake Chartered Accountants JPA Brenson Lawlor Ltd Kavanaghfennell KPMG Mazars McInerney Saunders McKeogh Gallagher Ryan Accountants McStay Luby Moore Stephens Nathans O'Connor Pyne & Co Ltd and OCKT Ltd O'Donovan Caulfield Lavin O'Neill Foley PKF O'Connor, Leddy & Holmes PwC Ireland RSM Farrell Grant Sparks Russell Brennan Keane Smith & Williamson UHY Farrelly Dawe White Ltd and Forrest & Co   Panel B: Insolvency Practitioners (Corporate) UK ASM (N) Ltd Baker Tilly Ryan Glennon BDO LLP and BDO Northern Ireland Begbies Traynor (Central) LLP CavanaghKelly Chantrey Vellacott DFK LLP Crowe Horwath Deloitte LLP Duff & Phelps Ltd Ernst & Young LLP FPM Cooper Parry Consortium FRP Advisory LLP Grant Thornton LLP Griffins Keenan Corporate Finance Ltd KPMG Leonard Curtis Recovery Ltd  Mazars LLP Menzies Business Recovery LLP Moore Stephens LLP Moorfields Corporate Recovery LLP PKF (UK) LLP PricewaterhouseCoopers LLP RSM McClure Watters RSM Tenon Ltd Smith & Williamson The P&A Partnership The UK 200 Consortium Zolfo Cooper   Panel C Insolvency Practitioners (Fixed Charge) Ireland Active Facilities & Property Management Alder King LLP Aramark Property Services Ltd Bannon BNP Paribas Real Estate CBRE Ireland Cleary McCabe & Associates Douglas Newman Good Commercial Property DTZ Sherry FitzGerald Finance One Ltd GVA Donal O'Buachalla Hooke & MacDonald Ltd HT Meagher O'Reilly HWBC Allsop Ltd Jones Lang LaSalle Knight Frank Ltd Lambert Smith Hampton Lisney Ltd Mason Owen & Lyons McPeake Auctioneers NuArk Ventures Ltd O'Dywer Property Management Ltd Osborne King & Megran Ltd Savills Commercial (Ireland) Ltd Sherry FitzGerald Kennedy Lowe W.K. Nowlan & Associates   Panel D Insolvency Practitioners (Fixed Charge) UK Alder King LLP Allsop LLP Aramark Property Services Ltd Ardmore Commercial BNP Paribas BTWShiells Ltd CBRE Cherryman Ltd Colliers International Property Consultants DTZ Debenham Tie Leung Eddisons Commercial Ltd GVA Grimley Ltd Knight Frank LLP Lambert Smith Hampton Group Ltd Lisney Osborne King & Megran Ltd Sanderson Weatherall LLP Savills (UK) Ltd Wedlake Bell LLP/Fairacre Asset Management Ltd Winterhill Largo PLC	On-going	3 yrs. with option to extend for further 1 yr.	Yes advertised via www.etenders.gov.ie
Legal Panels	8th Oct 2013 (i) Panel A - General Services; (ii) Panel B - Complex Commercial Property Projects; (iii) Panel C - Financing & Enforcement; (iv) Panel D - Litigation.	Panel A1 - Trusts, succession, probate and wards of court Beauchamps Gartlan Furey Mason Hayes & Curran Patrick F O'Reilly Ronan Daly Jermyn   Panel A2 Family Law Beauchamps Gore & Grimes Hayes Solicitors   Panel A3 General Property Dillon Eustace Dillon Solicitors Eugene F Collins Gore & Grimes Hayes Solicitors James Harte & Son James Riordan & Partners JW O'Donovan Kane Touhy Mason Hayes & Curran McDowell Purcell Michael Houlihan & Partners O'Donovan Murphy & Partners Patrick F O'Reilly   Panel A4 Environmental Law Beauchamps James Harte & Son Philip Lee   Panel B Complex Commercial Property A&L Goodbody Arthur Cox Beauchamps Byrne Wallace Eversheds Gartlan Furey Maples & Calder McCann FitzGerald Ronan Daly Jermyn William Fry   Panel C Financing and Enforcement A&L Goodbody Alfred Thornton Arthur Cox Barry C Galvin Beauchamps Byrne Wallace Dillon Eustace Eugene F Collins Eversheds Gartlan Furey Gore & Grimes Harrison O'Dowd Hayes Solicitors Holmes O'Malley Sexton Ivor Fitzpatrick James O'Riordan & partners JW O'Donovan Lavelle Coleman LK Shields Maples and Calder Mason Hayes & Curran Matheson McCann Fitzgerald McDowell Purcell McGuire Desmond Noel Smyth & Partner PJ O'Driscoll Ronan Daly Jermyn Walkers William Fry   Panel D Litigation Dublin Circuit A&L Goodbody Alfred Thornton Arthur Cox Beauchamps Byrne Wallace Eugene F Collins Eversheds Hayes Solicitors Holmes O'Malley Sexton Hugh J Ward & Co Ivor Fitzpatrick Lavelle Coleman LK Shields Lyons Kenny Maples & Calder Mason Hayes & Curran Matheson McCann Fitzgerald McDowell Purcell Patrick F O'Reilly Patrick Tallan & Co TP Robinson VP McMullin William Fry Woods Hogan Panel D Litigation Eastern Circuit Byrne Wallace Eversheds McDowell Purcell Panel D Litigation Cork Circuit McGuire Desmond PJ O'Driscoll Ronan Daly Jermyn Timothy J Hegarty & Son Panel D Litigation Northern Circuit Hegarty & Armstrong Keaney Nevin VP McMullin Panel D Litigation Western Circuit Hegarty & Armstrong Michael Houlihan & Partners Ronan Daly Jermyn Panel D Litigation Midland Circuit Callan Tansey Hegarty & Armstrong Keaney Nevin Poe Kiely Hogan Lanigan Panel D Litigation South West Circuit Harrison O'Dowd Michael Houlihan & PJ O'Driscoll Panel D Litigation South East Circuit James Harte & Son Lavelle Coleman Poe Kiely Hogan Lanigan	On-going	4 yrs. with option to extend for further 2 yrs.	Yes advertised via www.etenders.gov.ie
Legal services in Prague	6th Dec 2013	Wilson and Partners	On-going	Until conclusion of services	No	Emergency Appointment
Legal services in Budapest	9th Dec 2013	Kinstellar	On-going	Until conclusion of services	No	Emergency Appointment

VAT Rebates

Questions (152)

Gerald Nash

Question:

152. Deputy Gerald Nash asked the Minister for Finance if he will consider providing opportunities for the coach travel sector to reclaim VAT on fuel on the purchase of second-hand coaches and parts and tyres essential to the operation of the sector's business; and if he will make a statement on the matter. [6535/14]

Written answers

Minister for Finance

The transport of passengers and their accompanying baggage is exempt from VAT, this includes services provided by the coach and bus sector. This means that a person who provides a bus or coach service does not register for VAT and does not charge VAT on the supply of their services.  This also includes the hiring of a coach with a driver.  Persons who are exempt from VAT cannot recover VAT on goods and services, such as fuel, tyres and mechanic charges, used for the purposes of the person's coach service.

VAT law in Ireland must comply with the EU VAT Directive.  As passenger transport was exempt in Ireland on 1 January 1978, it is possible under the VAT Directive to continue to apply that exemption.  Allowing an exempt coach business to deduct VAT on its inputs is the same as applying a zero rate of VAT and this is not allowed under EU VAT law unless such VAT treatment applied on and from 1 January 1991.  As passenger transport services were not zero rated on 1 January 1991, we are not entitled to apply a zero rate to passenger transport services now.

However, with regard to the VAT incurred on the purchase of a touring coach, I would point out that while persons who are VAT exempt cannot recover any VAT incurred on goods and services incurred in relation to their business, there is special provision within the VAT code to allow a refund of VAT incurred on the purchase of touring coaches.  Under VAT Refund Order S.I. 266 of 2012 coach operators who are exempt from VAT may, subject to the conditions in the Order, be entitled to a refund of the VAT paid on the purchase of touring coaches that are no more than 2 years old and are within specified dimensions.

It must also be noted that where a good or service is exempt from VAT, such as passenger transport services, this reduces the cost of that service for both the providers and the user of the service.

Property Tax Data

Questions (153, 154)

Joe Higgins

Question:

153. Deputy Joe Higgins asked the Minister for Finance the number of home owners who have paid the 2014 property tax in full; and the number who have agreed payment arrangements with the Revenue Commissioners. [6538/14]

Joe Higgins

Question:

154. Deputy Joe Higgins asked the Minister for Finance the number of home owners who have their property tax bills deducted without their consent from their wages, social welfare payments or other income. [6539/14]

Written answers

Minister for Finance

I propose to take Questions Nos. 153 and 154 together.

I am advised by the Revenue Commissioners that they have published on their website at http://www.revenue.ie/en/tax/lpt/lpt-stats-11-2013.pdf and http://www.revenue.ie/en/tax/lpt/lpt-stats-initial-2014.pdf  the preliminary data available in relation to LPT for 2013 and 2014 respectively.  The data shows that as at 6 November, mandatory deduction at source from wages or occupational pensions applied in the case of approximately 25,000 owners (representing 25,700 properties) who had not complied with their LPT obligations. The Commissioners have also confirmed that such deductions took place after a number of communications to the persons concerned. LPT has not been deducted on a mandatory basis from social welfare payments.  

Regarding 2014, to date almost 80% of liable persons have confirmed their payment method for their 2014 LPT and property owners are continuing to submit their 2014 payment instructions to Revenue each day. By the end of December 2013 the amount of LPT collected for 2014 was €76m.  At the end of January 2014, a further €32.6m was transferred by Revenue to the Exchequer and the majority of this was in respect of payments received for 2014 LPT.  

The Commissioners expect to publish more up to date data shortly.  

Credit Availability

Questions (155)

Michael McGrath

Question:

155. Deputy Michael McGrath asked the Minister for Finance the lending targets that apply to AIB and Bank of Ireland for 2014; the way the banks performed in respect of the 2013 targets; and if he will make a statement on the matter. [6546/14]

Written answers

Minister for Finance

As the Deputy is aware, as part of the 2011 recapitalisation exercise, the Government imposed SME lending targets on AIB and Bank of Ireland for the three calendar years, 2011 to 2013. Each bank was required to sanction lending of at least €3 billion in 2011, €3.5 billion last year and €4 billion in 2013 for new or increased credit facilities to SMEs. Both banks have achieved their 2011 and 2012 targets. I am informed that both banks sanctioned circa €4bn in lending in 2013.

Having completed a process of deleveraging, both AIB and Bank of Ireland are now concentrating on growing their balance sheets.   In this context, both banks recognise the need to increase business lending in the period up to 2016, including lending to the SME sector.  Although the targets were a useful policy intervention, the focus now needs to shift towards the collation and examination, on a monthly basis, of more granular data on the funding of the activities of SMEs from both AIB and Bank of Ireland, the wider banking sector and increasingly the non-bank funding sector. This will facilitate the SME State Bodies Group and the Credit Review Office in monitoring progress against agreed annual SME lending plans and ensuring that new lending to SMEs continues to increase as a percentage of total sanctioned lending.   I will keep this area under close scrutiny to ensure that the SME sector can access an adequate flow of credit to support the recovery of the economy.

Excise Duties Yield

Questions (156)

Eoghan Murphy

Question:

156. Deputy Eoghan Murphy asked the Minister for Finance if he will provide a breakdown of excise returns by category and by month from January 2012 to January 2014. [6552/14]

Written answers

Minister for Finance

I am informed by the Revenue Commissioners that the breakdown of excise receipts by category and by month from January 2012 to December 2013 is as shown in the tables below. Please note that the receipts shown for 2013 are provisional and are subject to revision. Information for January 2014 is not available yet.

2012	Alcohol	Tobacco	Oils	Carbon	VRT	Other Excise
	€m	€m	€m	€m	€m	€m
JAN	87.8	1.0	223.8	16.8	47.7	8.5
FEB	35.6	52.8	166.7	41.3	62.9	4.1
MAR	50.6	55.8	176.7	24.5	56.1	4.0
APR	64.7	70.8	166.8	34.2	44.5	9.0
MAY	61.4	108.0	180.9	26.0	33.6	4.8
JUN	73.3	121.8	168.6	33.3	33.6	4.0
JUL	68.4	80.2	167.7	27.9	25.8	10.7
AUG	64.7	92.4	175.9	26.7	21.1	5.6
SEP	68.7	68.3	165.3	26.4	17.2	5.8
OCT	65.9	99.8	175.1	29.7	14.5	14.6
NOV	85.0	97.5	171.9	33.6	11.2	5.4
DEC	120.0	224.0	87.9	33.6	11.2	4.0
TOTAL	846.1	1,072.3	2,027.3	354.0	379.4	80.5

2013	Alcohol	Tobacco	Oils	Carbon	VRT	Other Excise
	€m	€m	€m	€m	€m	€m
JAN	93.5	1.1	231.4	26.0	52.1	8.3
FEB	40.6	104.8	158.9	42.7	64.6	3.0
MAR	52.2	52.5	173.2	33.6	55.1	3.9
APR	77.2	72.0	170.5	37.6	47.5	9.8
MAY	68.5	93.6	182.8	29.4	38.8	4.3
JUN	85.2	93.2	161.4	39.2	27.2	4.4
JUL	80.9	70.1	173.9	25.8	36.0	11.0
AUG	88.6	59.6	175.8	30.5	42.2	5.4
SEP	80.2	87.5	164.9	28.9	24.5	8.9
OCT	117.9	90.2	177.1	28.0	21.5	13.3
NOV	142.4	141.6	171.1	32.3	16.7	4.9
DEC	68.2	197.6	94.1	34.1	10.8	4.0
TOTAL	995.3	1,063.8	2,035.1	388.1	436.9	81.2

The "Other Excise" category includes Licences, Betting and Travel Tax.

Tobacco Seizures

Questions (157)

Eoghan Murphy

Question:

157. Deputy Eoghan Murphy asked the Minister for Finance if he will provide an update on the number of cigarette and tobacco seizures in each month since January 2013; the amount of cigarettes and tobacco seized in each month since January 2013; and if he will make a statement on the matter. [6553/14]

Written answers

Minister for Finance

I am advised by the Revenue Commissioners that the numbers of seizures of cigarettes and tobacco, and the quantities seized, each month since January 2013 are as detailed in the following table.

Seizures of Cigarettes and Tobacco	Cigarettes	-	Tobacco ( Kilograms )	-
-	Seizures	Quantity	Seizures	Quantity
2013	-	-	-	-
January	508	1,497,781	95	325.37
February	494	1,245,479	125	536.45
March	551	1,946,372	98	248.01
April	457	990,767	94	103.94
May	549	4,328,257	114	1,058.46
June	467	1,334,349	86	642.90
July	430	12,586,233	70	84.87
August	446	865,556	73	147.43
September	465	11,338,382	92	457.56
October	664	1,593,738	110	229.37
November	415	2,317,389	65	205.28
December	356	790,917	64	163.60
Total	5,802	40,835,220	1,086	4,203.24
2014	-		-	-
January	515	1,254,626	55	224

Combating the illegal tobacco trade is, and will continue to be, a high priority for the Revenue Commissioners and they are committed to maintaining their extensive programme of action against all stages of the supply chain for illicit products. Every effort will continue to be made to seize illicit products, and to ensure that those involved in the illicit trade are brought to account before the Courts for their criminal activities.

Tax Credits

Questions (158)

Derek Nolan

Question:

158. Deputy Derek Nolan asked the Minister for Finance if there is a proposed amendment in place to the single person child carer credit to allow the secondary claimant parent, who cares for the child less often than the primary claimant, access to credit in this regard or if there is any possibility of establishing a split credit; and if he will make a statement on the matter. [6554/14]

Written answers

Minister for Finance

The single person child carer credit (and the associated increase in the standard rate band) is, in the first instance, only available to the principal carer of a qualifying child.  The principal carer is the individual with whom the child resides, and who looks after the child, for the year or the greater part of the year.  

In introducing the credit, the Government had regard to a recommendation put forward by the Commission on Taxation in relation to the One Parent Family Tax Credit: - that the credit should be retained but that it should be confined to the principal carer only. 

Notwithstanding the above, as a result of an amendment which I brought forward at Committee Stage of the Finance Bill, a principal carer who is entitled to the credit and who does not wish to avail of it can choose to surrender it.  A secondary claimant may then make a claim for the credit, provided that the qualifying child resides with him or her for not less than 100 days in the tax year.  Thus, there are circumstances in which the secondary claimant may access the credit but only where the primary claimant has surrendered it and where the secondary claimant, through meeting the 100 day requirement, plays a significant role in caring for the child.

The purpose of the credit is to support single carers in remaining in, or returning to the workplace.  The purpose of relinquishment is to ensure that if the primary claimant has insufficient income or does not wish to avail of the credit, a secondary claimant with whom the child resides for over 100 days in the year, may claim it in recognition of their involvement with the child and the support they provide to the primary claimant.

This procedure of relinquishment means that two individuals could, by agreement among themselves, alternate claiming the credit with the primary claimant getting it in year one, and the secondary claimant in year two, and so on.

Allocation of childcare responsibilities is primarily for parents to agree.  Therefore, I have no plans to amend the legislation to allow for the splitting or apportioning of the new tax credit.

Departmental Advertising Expenditure

Questions (159)

Damien English

Question:

159. Deputy Damien English asked the Minister for Finance the total amount spent on advertising by his Department and each agency under his aegis in 2013; if he will provide a breakdown on the amount spent on each of TV, radio, print, outdoor, Internet and social media platform advertising; the amount spent on advertising agencies; if he will provide the information in tabular-readable form; and if he will make a statement on the matter. [6582/14]

Written answers

Minister for Finance

The information for the Deputy is in tabular readable form as requested.

Method	Cost (inc. VAT where applicable)	Company/Organisation
Print	€47,521.12	Public Appointments Service (PAS) - €7,535.38; Iris Oifiguil €15,295; Brindley Advertising - €24,690.74
Internet & social media	€1,466.25	PAS
Total	€48,987.37	-

 

A national Single Euro Payment Area (SEPA) awareness campaign commenced early in 2013 under the auspices of the Central Bank which used Kick Communications as advertising agency; this initiative is continuing in the first Quarter of 2014. The Department of Finance contributed 50% of the total budget of €400,000. On this basis the expenditure on SEPA in 2013 in each advertising category was as follows: 

Method	Cost (inc. VAT)
Newspapers	€ 87,443
Radio	€ 46,316
Online/Social Media	€ 10,672
Total	€144,431

The information for the agencies under the aegis of my Department is in the following tables.

Credit Union Restructuring Board:

Method	Cost (inc. VAT)
Print	€7,682
Internet	€2,053
Total	€9,735

 

The majority of this expenditure was on the advertisement of a number of positions in Credit Union Restructuring Board (ReBo) as part of a staff recruitment campaign.

 

Comptroller & Auditor General:

Date	Company	Method	Narrative	Cost (inc. VAT)
04/04/2013	Irish Jobs	Internet	Advertisement for 1 month for Trainee Auditors on website	€1,168.50
12/04/2013	Educate Ltd.	Print/ Internet	Advertisement for Trainee Auditors on ACCA careers	€1,926.51
03/07/2013	Newspaper Licensing Ireland Ltd.	Print	2013 National Newspaper Licence	€673.18
Total	-	-	-	€3,768.19

 

National Treasury Management Agency (NTMA):

The expenditure on advertising was in respect of the State Savings schemes:

Method	Cost (inc. VAT)
TV	€166,995
Press	€59,746
Radio	€18,450
Total	€245,191

 

National Asset Management Agency (NAMA):

Narrative	Date	Publication	Cost (inc. VAT)
Online advertisement to market launch and subsequent phases of NAMA 80/20 Deferred Payment Mortgage Initiative	Oct 2013, March 2013	Daft.ie	€7,380
Ireland Country profile in Euromoney	May 2013	Euromoney	€15,000
Total	-	-	€22,380

 

Revenue Commissioners:

Advertising expenditure related to critical aspects of Revenue's business operations, including advertising related to payment of Local Property Tax, P35 end of year return filing by employers and the self-assessed tax return filing deadline.

Method	Cost (inc. VAT)
Print	€800,324*
Radio	€665,838
TV	€100,703
Digital (banner advertisements taken out on certain websites)	€27,714
Advertising agency/production costs	€57,948
Total	€1,652,527

* Of which, €209,113 comprises legal notices. Revenue is obliged by law to publish certain notices in the print media when pursuing collection of tax debts through the court process.

Information and Communications Technology

Questions (160)

Damien English

Question:

160. Deputy Damien English asked the Minister for Finance if his Department currently engages in real-time reporting of online conversations on issues relating to his Department; and if he will make a statement on the matter. [6598/14]

Written answers

Minister for Finance

In response to the Deputy's question the Department of Finance Press Office, in addition to other duties, monitors online, print and broadcast media. In addition, the Department has a twitter account @irldeptfinance and we currently follow 481 accounts and have 3,714 followers.